A Loan Sharing Agreement is essential when multiple lenders wish to participate in providing a loan facility while maintaining a coordinated approach to loan administration and risk management. This document type is commonly used in Australia for both commercial and investment lending arrangements where multiple parties wish to spread risk exposure or pool resources for larger lending opportunities. The agreement must comply with Australian financial services regulations and typically includes detailed provisions for loan administration, payment distribution, decision-making processes, and default management. The document establishes clear protocols for how participating lenders will share both the benefits and risks of the lending arrangement, while ensuring compliance with Australian banking and finance laws, including requirements under the National Consumer Credit Protection Act 2009 and related regulations.

1. Parties: Identifies and defines all parties to the agreement, including lenders, loan administrator, and any agents

2. Background: Sets out the context of the agreement, including the purpose of the loan and the intention to share the loan among multiple lenders

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Loan Details: Specifies the total loan amount, purpose, interest rate, and term

5. Participation Arrangements: Details each lender's share of the loan, rights, and obligations

6. Administration of the Loan: Outlines the role and responsibilities of the loan administrator

7. Payments and Distribution: Mechanisms for receiving payments from borrower and distributing among lenders

8. Decision Making: Procedures for collective decision-making among lenders

9. Events of Default: Defines events triggering default and consequences

10. Enforcement Rights: Procedures for enforcing rights against the borrower

11. Representations and Warranties: Standard representations and warranties from all parties

12. Costs and Expenses: Allocation of costs and expenses among parties

13. Confidentiality: Obligations regarding confidential information

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law